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What is Meb Faber’s Ivy 10 Portfolio?
Meb Faber’s Ivy 10 Portfolio can be built with 9 ETFs. It is exposed to 20% bonds, 60% equities, and 20% commodities.
What is the historical return of Meb Faber’s Ivy 10 Portfolio?
Below you can see the historical performance of Meb Faber’s Ivy 10 Portfolio.
Portfolio data was last updated on 11th of August 2023, 08:35 ET
|Name||Year to date||Return in 2022||10 year return||CAGR since 1989 (%)||Draw Down||Expense ratio||Yield|
|Meb Faber Ivy 10 Portfolio||4.83||-9.44||4.1||7.61||-34.87||0.23%||2.8|
Here is what the table is showing you
Year to date: This shows what the portfolio has returned this year starting from the first trading day of the year.
10 Year return: This shows the compounded annualized growth rate over a ten-year period. The current year is excluded from calculations.
CAGR since 1989: This shows the compounded annualized growth rate since 1989. The current year is excluded from calculations.
Expense ratio: This shows the cost of holding the portfolio if you were to construct the portfolio using the proposed ETFs.
Yield: This is the expected dividend yield of the portfolio.
Please note that past performance is not a guarantee of future returns.
How do the Ivy 10 portfolio compare to the best portfolios?
Below you can see the returns of the best portfolios that we have benchmarked.
|Name||See Portfolio||Year to date||Return in 2022||10 year return||CAGR since 1989 (%)||Draw Down|
|Ben Stein Retirement||Coming soon!||4.05||-18.03||9.46||10.8||-35.42|
|Paul Merriman 4-Fund-Portfolio||Coming soon!||9.22||-11.98||11.25||10.38||-35.26|
|S&P 500||Coming soon!||17.09||-18.19||12.52||10.28||-37.63|
|Paul Merriman Target Date Portfolio (25 year old)||Coming soon!||6.63||-13.08||8.28||10.2||-36.46|
|Scott Adams Dilbert Portfolio||Coming soon!||10.87||-18.75||7.0||10.19||-44.88|
|JL Collins, Simple Path To Wealth, Wealth Building Portfolio||Coming soon!||16.6||-19.51||12.08||10.19||-37.0|
|American Institute of Individual Investors (AAII) Portfolio||Coming soon!||3.74||-13.91||9.7||10.16||-40.85|
|Paul Merriman Target Date Portfolio (35 year old)||Coming soon!||6.57||-13.22||8.31||10.08||-36.35|
|Assetbuilder.com Portfolio 14||Coming soon!||6.95||-16.94||7.59||9.99||-37.91|
|Balanced Portfolio 90/10||Coming soon!||14.83||-18.87||11.03||9.84||-32.78|
Meb Faber’s Ivy 10 portfolio explained
Meb Faber’s Ivy 10 portfolio is an expansion of the Ivy 5 portfolio. The portfolio attempts to mirror the portfolios of large endowment funds like Yale and Harvard.
The portfolios of large endowments have been heavily influenced by David Swensen of Yale.
David Swensen’s approach is to diversify into alternative asset classes like natural resources (timber), real estate, and private equity.
Meb Faber and the late Eric W. Richardson have looked over the shoulders of David Swensen and other fund managers and have constructed the Ivy Portfolio.
They present their findings and asset allocation in their book The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets.
Here’s Meb Faber talking about value stocks
How du you build Meb Faber’s Ivy 10 Portfolio with ETFs?
Below you can see which mutual funds or ETFs you can use to build the portfolio. They are the best-in-class funds and ETFs for this purpose. They are low-cost index funds that best capture the asset class. Read here how we selected the best funds.
Asset allocation for the Ivy 10 portfolio
- 10.00% US Large-Cap (VV)
- 10.00% US Small-Cap (VIOO)
- 10.00% REITs (VNQ)
- 10.00% International Developed Blend (VEA)
- 10.00% Emerging Markets (VWO)
- 10.00% Total US Bond Market (BND)
- 20.00% Commodities (DBC / GSG)
- 10.00% TIPS (VTIP)
- 10.00% International REITs (VNQI)
The letters in brackets denote the stock symbol for the recommended ETF. You can look up the symbols at your stockbroker. You can see a listing of all the ETFs we recommend on this page.
In addition to this, Meb Faber and Eric W. Richardson propose using the following ETFs:
What are the advantages and disadvantages of the Ivy 10 portfolio?
Here are the advantages the Ivy 10 portfolio
- The portfolio is simple to understand. It consists of 10 asset classes split evenly.
- The Ivy 10 portfolios is well diversified and has plenty of chances to rebalance.
- The portfolio is global and well diversified
- The portfolio is constructed by Meb Faber – a respected financial quant that almost single-handedly has revived market timing.
- The Ivy 10 portfolio nakes a bet on commodities.
- You get a portfolio that resembles that of Yale and Harvard. David Swensen of Yale has had astonishing returns using a similar model.
Here are the disadvantages the Ivy 10 portfolio
- The bet on commodities may not be desirable.
- The inclusion of commodities makes the portfolio slightly more expensive due to the higher expense ratio of commodity ETFs.
- The portfolio may be too heavy on hard assets such as commodities and REITs (it has 30% in total). They asset classes have done great in the past but their performance may not continue.
- The portfolio may not be suitable for some, as the premise for the endowments holding a similar portfolio is holding the assets forever. Private investors do not have forever. Most private investors have between 5-50 years.
Where can I learn more about the Ivy 10 portfolio?
Go here for a rebalancing excel worksheet.
Also, be sure to visit the Meb Faber site. It is a wealth of information and inspiration.
Suggestions for your next steps
If you have already committed to a portfolio then maybe you need help maintaining the portfolio. In this case you will find our rebalance worksheet useful.
Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.
You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.
What is the Meb Faber’s Ivy 5 Portfolio?
The Meb Faber’s Ivy 5 Portfolio is the little brother of Meb Faber’s Ivy 10 Portfolio. It consists of just 5 ETFs. You can find it here.
What is the Trinity portfolio?
The trinity portfolio is a mixed strategy portfolio by Meb Faber. It consists of exposure to buy and hold, value stocks, and trend following. You can read about the Trinity portfolio here. It is also available as an ETF under the ticker symbol TRTY.